Analyzing Hingham Institution for Savings (NASDAQ:HIFS) and OFG Bancorp (NYSE:OFG)

Hingham Institution for Savings (NASDAQ:HIFS) and OFG Bancorp (NYSE:OFG) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Earnings and Valuation

This table compares Hingham Institution for Savings and OFG Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hingham Institution for Savings	$236.78 million	2.65	$54.55 million	$22.81	12.62
OFG Bancorp	$902.28 million	2.16	$205.10 million	$4.84	9.55

OFG Bancorp has higher revenue and earnings than Hingham Institution for Savings. OFG Bancorp is trading at a lower price-to-earnings ratio than Hingham Institution for Savings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hingham Institution for Savings and OFG Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hingham Institution for Savings	21.17%	7.89%	0.81%
OFG Bancorp	23.45%	15.62%	1.74%

Institutional and Insider Ownership

49.3% of Hingham Institution for Savings shares are held by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are held by institutional investors. 1.2% of OFG Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.9%. OFG Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 3.0%. Hingham Institution for Savings pays out 11.0% of its earnings in the form of a dividend. OFG Bancorp pays out 28.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OFG Bancorp has increased its dividend for 5 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Hingham Institution for Savings has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Hingham Institution for Savings and OFG Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hingham Institution for Savings	0	1	0	0	2.00
OFG Bancorp	0	3	2	1	2.67

OFG Bancorp has a consensus target price of $47.20, indicating a potential upside of 2.11%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe OFG Bancorp is more favorable than Hingham Institution for Savings.

Summary

OFG Bancorp beats Hingham Institution for Savings on 13 of the 18 factors compared between the two stocks.

About Hingham Institution for Savings

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company provides commercial and residential real estate, construction, home equity, commercial, consumer, and mortgage loans. In addition, it offers ATMs, debit cards, and Internet-based banking services. The company offers its services through a network of offices in Boston; Washington, D.C.; and San Francisco Bay Area. Hingham Institution for Savings was incorporated in 1834 and is headquartered in Hingham, Massachusetts.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.